P Company owns an 80% interest in S Company.During 2017,S sells merchandise to P for $150,000 at a profit of $30,000.On December 31,2017,50% of this merchandise is included in P's inventory.Income statements for P and S are summarized below: Controlling interest in consolidated net income for 2017 is:
A)$225,000.
B)$285,000.
C)$297,000.
D)$315,000.

Question

P Company owns an 80% interest in S Company.During 2017,S sells merchandise to P for $150,000 at a profit of $30,000.On December 31,2017,50% of this merchandise is included in P's inventory.Income statements for P and S are summarized below:  Controlling interest in consolidated net income for 2017 is:
A)$225,000. 
B)$285,000. 
C)$297,000. 
D)$315,000.

Quizplus · Accepted Answer

The Answer of P Company owns an 80% interest in S Company.During 2017,S sells merchandise to P for $150,000 at a profit of $30,000.On December 31,2017,50% of this merchandise is included in P's inventory.Income statements for P and S are summarized below:  Controlling interest in consolidated net income for 2017 is:
A)$225,000. 
B)$285,000. 
C)$297,000. 
D)$315,000.

P Company Owns an 80% Interest in S Company